Tue Jul 22 12:55:26 UTC 2025: **Summary:**

India and the U.S. are struggling to reach a trade deal before the August 1st deadline, with agriculture being a major sticking point. India is hesitant to open its agricultural sector to U.S. imports to protect its farmers. The U.S. wants India to open up its agriculture sector to set a precedent for future deals with the EU and Japan. While a mini-deal before August 1st seems unlikely, India is now focused on a broader Bilateral Trade Agreement (BTA) by September or October. The government also remains wary of a potential surprise announcement from U.S. President Trump, similar to deals struck with Indonesia and Vietnam. In addition to agriculture and dairy from the Indian side, the U.S. is reluctant to reduce import duties on automotive components to zero, which is a hurdle on the U.S. side.

**News Article:**

**India and U.S. Trade Talks Stall Over Agriculture; Broader Deal Eyed**

**New Delhi -** With the August 1st deadline looming, trade negotiations between India and the United States have hit a snag, primarily due to disagreements over agricultural imports. India is resisting pressure to open its agricultural sector, citing the need to protect domestic farmers. The U.S., however, views access to the Indian agricultural market as crucial, hoping it will set a precedent for future trade agreements with the European Union and Japan.

While prospects for a “mini deal” before the deadline appear dim, sources indicate India is now focused on securing a broader Bilateral Trade Agreement (BTA) by September or October.

“The Indian team is back from the U.S. and has left them with what India has to offer,” an official familiar with the negotiations told The Hindu. “Now, whether they accept the terms or not is up to them. Agriculture remains a major issue where there is lack of agreement.”

The Indian government remains cautious of potential surprises from U.S. President Donald Trump. Concerns stem from previous instances where the U.S. President announced details of trade agreements with Indonesia and Vietnam that differed from what negotiators had agreed upon.

Beyond agriculture, disagreements also persist over U.S. reluctance to lower import duties on automotive components. This issue remains a hurdle from the U.S. side.

The outcome of these negotiations is significant for both countries, with potential implications for global trade dynamics. Further updates are expected as the August 1st deadline approaches and talks continue.

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